693.569/12–1949
The British Embassy to the Department of State
Control of Strategic Exports to China: Petroleum
In connexion with the proposal for the control of exports of strategic materials to China, the Foreign Office are now prepared to approach the Netherlands Government about sales of petroleum.
It is suggested that it would suffice to address a brief note to the Netherlands Government, which might begin by saying that it is desired to take such steps as lie within our power to prevent the Chinese communists acquiring substantial stocks of oil which might later be used for military purposes. The note might then explain that with this in view it has already been made known to the British oil companies that the British Government would prefer them to avoid long-term contracts with China and to confine themselves to supplying oil adequate for civilian requirements on a short-term basis. The Netherlands Government might in conclusion be invited to do likewise.
The Foreign Office are desirous to know if the State Department are now ready to take a similar step and if they agree with the general line of the approach described above.67